Lloyds Banking Group has today informed its workforce that it is significantly diluting staff pensions. This news will impact 35,000 staff at the bank.

Unite, the union representing staff at LBG, has warned that this is an attack on the pensions of loyal staff denouncing it as a `kick in the teeth’ for those who have worked hard to return the bank to profitability.

Having reported half year profits of £2.1bn and on course to give its CEO £2.3m bonus, the news that the bank will freeze future inflation increases for the staff’s defined benefits schemes, Unite says that this development is `devastating’ for the workforce.

Dominic Hook, Unite national officer said: “Lloyds Banking Group is attacking the pensions of its long-serving, loyal and hardworking staff. This is a kick in the teeth for employees working hard for the bank and trying to save for their retirement.

“How can a bank which through the hard work of staff returns half year profits of £2.1bn justify this attack? There seems to be enough money in the Lloyds money pot to handsomely reward their boss, yet somehow the money runs out when it comes to the pensions of staff earning just £15,000 per year. Whilst executive pay in the bank grew by 91% last year, the rewards for staff continue to fall.